Andrew and Belinda (husband and wife) are both employed by a UK firm and recently accepted a transfer to the Australian branch of their UK employer.Andrew and Belinda decided not to sell their London residential property. They listed their London property for rental with a London real estate agent and the property is currently let for 500 pounds sterling per week. They maintain a UK bank account for receipt of rent. The UK bank account also earns interest on the balance of funds held. Prior to leaving the UK Andrew and Belinda were advised by their companys human resources department that they (Andrew and Belinda) will not have to pay tax on the income in Australia because the income is sourced in the UK.Andrew and Belinda come to you to confirm whether this advice is correct.

Your task: Advise your clients (A&B) as to whether Australian tax is or is not payable on the UK rental and interest income.

ASAP please